This is a zone change request from Neighborhood Commercial (NC) to Community Commercial (CC) on Lot 2, Block 1 MK Subdivision generally located at 1450 Chy Way northwest of the intersection of Grand Avenue and 54^th Street West. The property is owned by Larry and Mary Karls. A pre-application meeting was held at the subject property on July 14, 2014. The pre-application meeting notes are included as an attachment. The Zoning Commission conducted a public hearing on September 2, 2014, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria on a 5-0 vote.

State law at Section 76-2-304, MCA, requires that all zone changes be reviewed in accordance with 10 criteria. Using the 10 criteria to determine the appropriateness of the zone change request, the City Council may:
1. Approve the zone change request
2. Deny the zone change request
3. Allow withdrawal of the application
4. Delay action for up to thirty (30) days

If the property is developed the property tax base will increase. The new zoning will increase the city fee assessments for this parcel.

The applicant is requesting to rezone a 2.11 acre parcel described as Lot 2, Block 1, MK Subdivision, located north of Grand Avenue and west of 54^th Street West. The property has been zoned NC since its annexation to the city in 2007. The owner has no buyers or development plans at this time but wants to increase the market potential for the property. The proposed zoning is identical to the zoning of Lot 1 to the east, a 2.15 acre parcel on the northwest corner of Grand Avenue and 54^th Street West. Uses allowed in the CC zone include retail businesses, service businesses, restaurants, gas stations and convenience stores, veterinary hospitals, and general contractors with storage yards.  
 
The lot to the west is zoned NC and is undeveloped. Property to the south is zoned A-1 in the County and is used primarily for agricultural. The property to the east across 54^th street west is zoned CC and undeveloped. Property to the north is zoned NC and R-70. The R-70 zone is the Cottonwood Grove Subdivision. Cottonwood Grove consists of 156 single family homes. Grand Avenue is a principal arterial street and has a posted speed limit of 50 mph past the intersection with 54^th Street West. The average daily traffic at this location is approximately 3,500 vehicle trips per day. 54^th Street West is a minor arterial street and carries about the same amount of traffic as Grand Avenue at this location. 54^th Street West has a posted speed limit of 55 mph north of Grand Avenue. The intersection is now a stop sign controlled intersection for 54^th Street West. 54^th Street West does not continue south of Grand Avenue. Vehicles traveling further south either turn left to connect with 48^th Street West or right to connect with 56^th Street West. Fire Station #7 is located on the east side of 54^th Street West just north of the Grand Avenue intersection. Additional development in the area combined with commercial development at the intersection will trigger a review of the traffic control at this intersection. The 2008 Growth Policy encourages the location of commercial uses at intersections of arterial streets to avoid “stripping” commercial zones narrowly along arterial streets. The practice of commercial strip zoning is evident in the traffic congestion and accessibility problems along Main Street, Grand Avenue, and 24^th Street West. The 2001 West Billings Neighborhood Plan supports location of a commercial node at this intersection. The primary difference between a CC zone and the NC zone is the allowance of on-premise service of alcohol (liquor license) either by right or by special review. Another difference is the NC limits most retail spaces (per tenant) to 10,000 square feet and there is no limit in the CC zoning district. The CC zone also allows personal storage warehousing and NC does not allow this use.
 
The property is located near an intersection but only has direct access from the internal streets, Chy Way and Payton Drive. No drive approaches will be allowed directly from Grand Avenue or 54^th Street West for this property and the subdivision it is located in. There are 3 lots zoned NC to the north that are adjacent to the Cottonwood Grove Subdivision. The CC zone requires a maximum building height of 45 feet and a front property line minimum setback of 20 feet. A new section of the zoning code – 27-612(e) - requires any new commercial development adjacent to a residential zone to provide additional screening and buffering to those residential zones including limiting outdoor lighting, signage, waste collection areas and screening of mechanical equipment. These requirements will not apply to development on this property since it is more than 50 feet from a residential zone. The CC zone could allow the addition of a restaurant with alcoholic beverage service with special review approval. The proposed CC zone also allows residential use mixed with commercial uses. The residential uses would require the same setbacks, lot area and lot coverage as the RMF-R zone.
 
The applicant conducted a pre-application neighborhood meeting on July 14, 2014. Six surrounding property owners attended and a neighbor across Grand Avenue was opposed to any further development in the area including residential and commercial. One interested person suggested a private covenant be adopted to limit the development of bars and casinos since those would normally be allowed in the CC zone. A synopsis of the meeting and list of attendees is included as an attachment. No surrounding property owners contacted the Planning Division staff prior to the Zoning Commission public hearing.
 
The West Billings Neighborhood Plan adopted by the City in 2001 states the purpose of the plan is to guide the long-term growth of West Billings by preventing sprawl development, concentrating commercial development at arterial intersections and allowing preservation of open spaces and farm land through cluster subdivisions. A preferred land use map was developed locating and encouraging the development of neighborhood service commercial centers, community commercial areas and regional commercial areas. The intersection of 54^th Street West and Grand Avenue was designated as a community scale commercial area. The community scale commercial area is approximately 28 to 40 acres in area with a mixture of commercial zoning to allow a variety of commercial uses. The property on the east side of 54^th Street West at Grand Avenue has 8.2 acres of CC zoning. This subdivision is approximately 11.5 acres in total lot area with 2.15 acres currently zoned CC and the remaining acres zoned NC. The addition of this lot as a CC zone is in conformance with the West Billings Neighborhood Plan goals and policies. The 2008 Growth Policy encourages the compatibility of adjacent zoning to new zoning especially in established neighborhoods. The proposed zoning is compatible with the adjacent zoning and existing land uses.  
 
The Planning Division reviewed the application and recommended approval based on the ten (10) criteria for zone changes. The Zoning Commission concurred with this recommendation. The subject property is located near the intersection of arterial streets and is in an area identified in the West Billings Plan as a commercial node. Grand Avenue and 54^th Street West are protected from additional drive approaches through the MK subdivision that only allows internal street access for new development. Grand Avenue has exhibited increasing traffic as new subdivisions are developed in the area. A new middle school is planned for a property at the intersection of Grand Avenue and 56^th Street West. Any new development will likely require an update of the traffic impact analysis for the intersection of 54^th Street West and Grand Avenue. In the future, additional traffic control may be necessary at this intersection. Some uses in the CC zone would only be allowed by special review approval such as on-premise service of alcoholic beverages with gaming. Any development of the property requires compliance with the new zoning and the ability to meet site development requirements and traffic safety standards. The 2008 Growth Policy and the West Billings Neighborhood Plan encourage predictable land use decisions that are consistent with neighborhood character and land use patterns. The existing use and proposed zoning are consistent with this neighborhood and land use pattern.

The Zoning Commission conducted a public hearing on September 2, 2014, and received the staff recommendation and testimony from the applicant. No other testimony was received. Mary Karls, owner and applicant, testified in favor of the zone change. She stated they have owned the property since 2007 and have been actively marketing the lot in recent years. She stated the reason for the zone change is to open the market wider for potential buyers. She stated having the CC zone in place is a benefit since the buyer would not have to carry the burden of re-zoning if necessary. She stated the 1 surrounding owner in opposition that attended to pre-application meeting did not agree with any of the new development in the area and wanted the property to remain agricultural. Mrs. Karls stated they might consider protective covenants for the property to restrict certain uses on the property.

Larry Karls, owner and applicant, testified in favor of the zone change. He stated the only activity on the property so far has been his twice-per-year mowing. He thought the property would make a nice location for a convenience grocery store and gas station. He stated he personally does not want the property to have a casino or a bar and would seriously consider a covenant to restrict those uses. He stated the area has developed quite rapidly in the last few years and this would be a good location for services for the neighborhood.

The public hearing was closed. Barbara Hawkins made a motion to recommend approval and adoption of the findings of the 10 criteria. The motion was seconded by Dan Wagner. Dennis Ulvestad stated he agreed with the applicant the area is in need of services and this would make a good location. The motion was approved by a 5-0 vote.

Prior to any decision on the zone change by the City Council, it shall consider the findings of the following 10 criteria:
 1.   Is the new zoning designed in accordance with the Growth Policy?
      The proposed zone change is consistent with the following goals of the Growth Policy:

• Predictable land use decisions that are consistent with neighborhood character and land use patterns. (Land Use Element Goal, page 6) 

  The proposed zoning would permit more land uses than currently allowed by the NC zoning and this is consistent with the neighborhood character and the planned development of the area at the intersection of Grand Avenue and 54^th Street West.   
 
2.   Is the new zoning designed to secure from fire and other dangers?
      The new zoning requires minimum setbacks, open and landscaped areas, and building separations. The new zoning, as do all zoning districts, provides adequate building separations and density limits to provide security from fire and other dangers. The City Fire Department will ensure safe access to the site and provision for minimum fire flow to new buildings.
 
3.   Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety will be promoted by the proposed zoning. Development of the vacant property will be done in accordance with current site development regulations.
 
4.   Will the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The proposed zoning may have some impact on the surrounding streets, and a traffic impact study may be required depending on the development that is built on the property in the future. New development that generates 500+ new vehicle trips per day will require a Traffic Accessibility Study (TAS).
Water and Sewer: The City will be able to provide sewer and water to the property by extension of those utilities from Payton Drive and Chy Way.   
Schools and Parks:  There should not be any impact to schools from the proposed zone change. However, any residential development in the future could affect the schools in the area.
Fire and Police: The subject property is currently served by the city Public Safety Services. Commercial development of the site may increase calls for service and change the nature of those calls for service.
 
5.   Will the new zoning provide adequate light and air?
The proposed zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.
 
6.   Will the new zoning effect motorized and non-motorized transportation?
Traffic generation from a commercial property is dependent on the specific uses within the development. A development plan has not yet been finalized so prediction of traffic impacts is not possible with certainty at this time. In general, retail businesses will generate larger volumes than service businesses. Sidewalks within the subdivision have not yet been installed. 54^th Street West and Grand Avenue also do not have sidewalks or trails developed adjacent to this property. Both streets are designated for on-street bike routes without designated bike lanes.   
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will provide an area to locate retail and service businesses in an area where none currently exist.  
 
8.   Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning does consider the character of the district and the suitability of the property for commercial uses including neighborhood and commuter service businesses. The level of existing traffic along with the number of existing and planned residential developments in the area will likely support the types of businesses likely to locate here.
 
9.   Will the new zoning conserve the value of buildings?
The lot is currently vacant. Development of the site will add property value and may increase the adjacent property values. Surrounding buildings should be conserved when development occurs on the site by adding property value to the market.
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit a greater variety of uses on the property and is the most appropriate use of the property.